US against market economy status for China

WASHINGTON - The United States has told the World Trade Organization that it opposes granting market economy status to China, a position that if upheld would allow Washington to keep high anti-dumping duties on Chinese goods.

The statement of opposition, made public on Thursday, was submitted as a third-party brief in support of the European Union in a dispute with China that could have major repercussions for the trade body's future.

China is fighting the EU for recognition as a market economy, a designation that would lead to much lower anti-dumping duties on Chinese goods by prohibiting the use of third-country price comparisons.

China has long urged the US and EU to recognize China's market economy status, which China believes would be automatically granted on Dec 11, 2016, 15 years after China's entry into the WTO.

China's Ministry of Commerce (MOC), in a recent statement, criticized the US decision on China's status as a non-market economy country and launching anti-dumping investigation against Chinese aluminum foil imports under the "analogue country methodology."

"The US ignored China's achievements in building a market economy and the conclusion was a serious distortion of the real situation," the statement said.

Reuters - China Daily